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Are cannabis stocks iin a bubble? He can't do fundamental analysis on cannabis stocks--he doesn't know what the demand will be and what share the illegal market will have. Also, this kind of consumer product involves customer brand loyalty. So, branded companies like Constellation which are working with cannabis will fare better. Yes, we're in a bubble.
He used to own it. A great industrial company involved in airplane parts, Otis Elevators and Carrier air conditioners. UTX has centered their technology on the gear turbo fan, an improvement on airplane jet engines with 10% more fuel efficiency, but it's a more complex engine. UTX had issues manufacturing some of the parts. This slowed them down. They have since solved them, so they shoud be on a roll. He likes this stock and may look into it.
Over the past 10-15 years, they've re-focused from paper-based to cardboard-based shipments. They're likely struggling with paper industry issues--China is a disruptor by sucking up the used paper in the States then re-processing it. The high American dollar doesn't help. It's a well-managed company.
(A Past Top Pick on Sept. 20, 2017, Down 36%) They made a couple of purchases. Based on past ones, the street assumed they would be good, but last fall Newell was hit with big input costs through Rubbermaid and their biggest customer, Toys 'R' Us, went under. They also carry too much debt. But he's actually doubled-down on Newell. He believes in it. It's trading less than 1x book value. It's cheap. It's sold off businesses to reduce debt. It needs a few years to turn around.
(A Past Top Pick on Sept. 20, 2017, Down 36%) They made a couple of purchases. Based on past ones, the street assumed they would be good, but last fall Newell was hit with big input costs through Rubbermaid and their biggest customer, Toys 'R' Us, went under. They also carry too much debt. But he's actually doubled-down on Newell. He believes in it. It's trading less than 1x book value. It's cheap. It's sold off businesses to reduce debt. It needs a few years to turn around.
(A Past Top Pick on Sept. 20, 2017, Down 4%) He still owns it and believes it will go higher long-term. Headwind: this spring, oil prices started to rise, and the market got worried that we're in the peak of the cycle. But the business is growing 6% annually in volumes, and the Chinese are getting into this business.
(A Past Top Pick on Sept. 20, 2017, Up 5%) They own small medical buildings in the U.S midwest. He likes it for its 7.7% divdend. It weathered some negative publicity in South Dakota where a couple non-profit hospitals opened in their area, leading to a loss of profit. He buys it below $14 and sells around $16.
A great company. Anti-virus software companies are moving to software as a service model, and this business is getting more competitive. But he doesn't know Symantec's funamentals, though he likes their business model. He would dig further and if it looks positive, then buy it.
It's an industry that must transition rapidly. The infrastructure build for 5G is huge, demanding a lot of capital, but 5G will move a lot more data. U.S. telecoms just reported well, but there's pressure on the Canadian ones. Consumers want more for less me, and the capex to achieve 5G is huge.